The national average rent in Canada in December 2022 was $2,005, an increase of 12% compared to 2021. Let’s talk about the failures of Justin Trudeau (war on fossil fuels) and CMHC – January 22, 2023,
Similar to his father, Pierre Trudeau, Justin Trudeau delivers poverty to the people he promised to serve. I’ve written several articles about the PETRODOLLAR. My version of the petrodollar differs from how others explain the petrodollar. My version of the petrodollar revolves around the FINANCIAL INFRASTRUCTURE of the U.S. developed AROUND the world since the United States ABONDANED the gold standard.
The U.S. is closer to a capitalistic nation than most nations of its size around the world. This is very important to understand because this is why the entrepreneurs in the U.S. financial system created a DEMAND for U.S. dollars all over the world. As more U.S.-based entrepreneurs went around the world trying to make a profit, a common problem of currency INSTABILITY occurred; sure, in many instances, America may have had something to do with it, but without financial education, most regions in the world have a hard time comprehending that ENTREPRENEURS, not BIG GOVERNMENT create the wealth of nations.
Because of this much-needed demand, financial infrastructure was built primarily by Americans to serve their financial interests, which was to be PAID in U.S. dollars even if they spent a foreign currency to build their business. Even in Canada, a lot of businesses exist because their end goal is to use the lowered valued to keep their costs down, so when they’re paid in U.S. dollars (via the U.S. consumer), their profit margin would be much larger.
Before you assume that you should go on a campaign to stop this, you’d better comprehend that this relationship pays for a lot of Canada’s PUBLIC SERVICES, which Canadian businesses will gladly pay in many instances because it works out cheaper than paying the U.S. tax rates. Now, had Canada had the same demand for its currency on the foreign exchange markets, the then stronger Canadian dollar would make being a business owner more expensive in Canada.
If you’re following me here, now we’re getting into the topic of DOMESTIC consumer price inflation, which is what higher rent prices are all about. If you’re renting in Canada, Justin Trudeau and Jagmeet Singh have decided that they want the COST OF LIVING to rise, because they imagine higher prices will FORCE consumers of fossil fuels to change their behavior.
This sounds like a great idea if you hate fossil fuels until you comprehend that our modern economy revolves around fossil fuels. Quite simply, there don’t have viable alternatives that exist to replace ALL fossil fuels in the modern era. Justin Trudeau has OPENLY declared war on plastic, it’s an excellent idea and all, but plastic is often durable considering the fact that it’s chemically made. This durability keeps the cost of doing business DOWN!
If the plan is to make plastic, polyester, and all other fossil fuel-related products more expensive, mission accomplished, but don’t be surprised when the cost of MAINTAINING an apartment building or house goes up. Apartment buildings and their inhabitants consume A LOT of fossil fuels, and Justin Trudeau and his 1st gender-balanced cabinet haven’t seen that far into the future.
Or maybe the reality is that Justin Trudeau, similar to most Leftists, imagines that inventions and innovations just happen, no matter how LARGE and overbearing the government is on the productivity classes of the economy. I remind the reader that the major flaw with Left-wing think tanks is that they imagine that no matter how many NEW rules and regulations they(The Left) put on the productive classes, the outcomes will be the same.
I’ve also heard Left-wingers argue that most innovations and inventions come from the government and NOT private citizens who sell their ideas for PROFIT to the government. Nothing pays like a monopolized government contract; in Canada is an example a lot of healthcare consumer-related goods have no COMPETITION, because the government granted a specific healthcare company a CONTRACT that allows said entity a constant stream of income from the Canadian TAXPAYER.
Back on the topic of energy, if you’re considered a GREEN company, Justin Trudeau has made you the beneficiary of his CARBON TAX, that EVERY Canadian has to pay for. This redistribution scheme created by Justin Trudeau and his 1st gender-balanced cabinet, to date, hasn’t worked out well because, as one would expect, it wasn’t well thought out.
To circle back, and I’m being kind by saying this, Justin Trudeau’s carbon taxing plan hasn’t worked out because the central banks imagine that no matter how many new rules and regulations they add to the economy, the results will be the same as they were in the past when prior rules and regulations didn’t exist. I hear a lot of people praising nuclear energy; well at one point, nuclear energy was not made ILLEGAL by the government, meaning that someone could literally learn about nuclear energy and hoard the yellow rock without having to attend a government-regulated school.
Now that nuclear energy is reserved for the experts, fewer people understand how it works, which makes nuclear energy a HARD sell to people who, when they hear the words “nuclear,” only imagine nuclear bombs. For the record, a Lithium bomb can cause just as much, if not MORE, damage than a Nuclear bomb; putting out a lithium bomb explosion could take MONTHS; there are instances of animals FLOURISHING near where a nuclear accident occurred.
Yes, radiation is one thing, but a Lithium fire can cause a host of new problems, and lithium batteries are now EVERYWHERE. Narrative-based politics lead to economic and financial ruin. Rental prices are 100% a domestic problem. It’s a sign things are out of whack, and it’s also a sign that the overall Canadian population is getting POORER!
In closing I remind you that the purpose of CMHC was to make buying a house more accessible to Canadians; this idea dates back to Pierre Trudeau, the concept by these Liberals was to disrupt the market by inserting government programs into the financial system. A reminder that rent controls were also a government-created solution that has proven to be disastrous.
In Quebec, their rental/price control mechanism only works because TRANSFER PAYMENTS cover their PUBLIC SECTOR shortfalls. I’ve often compared the Province of Quebec if it was an independent country to Argentina. In Argentina, what leads to their CONSTANT hyperinflation problems are all the PRICE CONTROLS embedded into their system of governance.
When you remove Quebec, Canada is a relatively CONSERVATIVE country; even when you include the immigrants, people tend to ignore the Quebecers who LEFT Quebec, bringing their SOCIALIST ideals with them when they left. Quebec used to be Canada’s most populous province; that title currently belongs to Ontario primarily because of all the Quebecers who LEFT, bringing their socialist ideas with them.
Quebec has the highest tax rate in the country, which benefits the UNPRODUCTIVE people in Quebec, and because of Quebec’s secession movements, which benefit the province politically, a lot of Quebec’s bad ideas are being paid by the rest of Canada, but make no mistake about it, English speaking Canada also has some very bad ideas, but you’d be wise to pay close attention to the reality that CMHC doesn’t have the same damaging effect on Quebec’s rental market that it has on the rest of Canada.
That’s because the central planners of Quebec had a NATIOANLIISTIC strategy towards housing, meaning that CMHC can not supersede their RENT CONTROLS initiatives. Whereas in Ontario and B.C., the premiers, whether Conservative or NDP or Liberal, have a hard time comprehending that the Federal Government, via CMHC, is creating all sorts of DISTORTIONS in the rental market.
The CMHC is actually COMPETETING with Rent Controls, and the CMHC is kicking its ass because why deal with rent controls when I can build a CONDO? Now, as you may have heard, Quebec is having a problem building for-profit rental housing in their province; there are shortages of rentals, but because of their PRICE CONTROL mechanisms relating to housing, the COSTS re being passed onto the rest of Canada.
Transfer payments go to PUBLIC SECTOR to make up for SHORTFALLS; this is one of the many ways deficit spending in Quebec has made it appear that their price control schemes have some benefit. This is actually disastrous for Quebec in the long term, especially with this war on fossil fuels, which is driving up costs, because, in Quebec, their government has a HEFTY tax on LABOUR, low birth rates along with an ANTI-IMMIGRANT culture that is unwelcoming to non-white, non-french speaking people.
If you want to attract white french speaking people, it would be smarter to embrace a FREE MARKET economy; instead, Quebec has embraced a more Marxian culture and CMHC, although not as much a problem in Quebec, is HELPING to drag down the rest of the Canadian economy, which is a negative for Quebec because if Canada, becomes a have-not country, that has consumer price INFLATION written al over it, which will make the poor, even poorer.
Interesting times ahead!